The week’s best buys …and some to sell

British American Tobacco The Sunday Times

Pricing flexibility has contributed to BAT’S growing profits and rising dividend. A deal with Reynolds, maker of Camel, would increase US exposure and secure access to a portfolio of e-cigarettes. Buy. £47.08.

Luceco The Mail on Sunday

Luceco makes keenly priced, superior-quality electrical products for factories, hospitals, schools and mainstream retailers. Its LED division is driving growth. Recently floated; shares should rise. Buy. 147.75p.

B&M European Value Retail The Mail on Sunday

Analysts at Haitong Research have found that the value retailer’s grocery prices are at least 35% more expensive than Aldi and Lidl own-brand equivalents. High rents and lower sales could hamper growth. Sell. 238.7p.

Cobham The Times

It’s “all gone horribly wrong” for the aerospace engineer as the latest profit warning highlights difficulties across the group. Debt is climbing and the incoming CEO is likely to cut the dividend. Sell. 139.75p.

Motorpoint Group The Daily Telegraph

The car dealership chain’s shares have been hit by a profit warning. But this has created a speculative buying opportunity, and directors have increased their holdings. Margins are up and there’s a pipeline of new sites. Buy. 140p.

RELX The Times

Growth looks set to continue at the “grindingly reliable” information group, as revenues and profits rise and the buy-back programme boosts earnings per share. Expanding into Brazil, India and China. Buy. £14.62.

GKN The Times

End markets have got tougher, and analysts are sceptical about global engineering groups. GKN has outperformed the market: shares have had a good run since the summer. Take profits. Sell. 314p.

International Personal Finance Investors Chronicle

The loan provider has reported a recovery in its Mexican and PolandLithuanian home credit businesses. Yet shares are pricey given competition from payday lenders and tighter Polish legislation. Sell. 298.7p.

Stobart Group The Mail on Sunday

The infrastructure group is performing strongly, and a deal with Cityjet to operate flights to 18 destinations from Southend Airport should more than double passenger volumes. Broker Cenkos cites a potential 7.8% yield. Buy. 158p.

Whitbread Investors Chronicle

Investment in the Costa brand has eroded margins, but the hospitality giant is still set to meet forecasts. Both Costa and Premier Inns are growing market share; Premier’s London sites are doing particularly well. Buy. £37.11.

Tesco Sharecast

Credit Suisse has reiterated its “underperform” rating, citing the supermarket’s “structural problems”. The latest results showed weak cash flow, a deteriorating balance sheet and rising debt. Target 130p. Sell. 211.81p.

Unite Group Sharecast

Morgan Stanley has downgraded the student accommodation provider, citing a risk of oversupply. Tuition fee hikes and stricter visa rules for non-eu applicants will have an impact on international student numbers. Sell. 560p.